Manchester City are confident of further strengthening their squad this summer despite already landing striker Erling Haaland, sources have told ESPN.

City have agreed to exercise the €60 million release clause in Haaland's contract at Borussia Dortmund and the 21-year-old is set to officially move to the Etihad Stadium on July 1.

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But sources close to the club insist the Haaland's arrival is unlikely to be the last of the transfer window with conversations ongoing about the possibility of adding a midfielder and a full-back to the squad ahead of next season.

Veteran midfielder Fernandinho has already announced his intention to return to Brazil at the end of the campaign while left-back Benjamin Mendy remains suspended by the club while he awaits trial for on rape charges.

There is also interest in Oleksandr Zinchenko, who has predominantly played at left back under Guardiola. Sources have also told ESPN that City are expecting Gabriel Jesus to ask for permission to leave the club amid interest from Arsenal and Juventus and that, if it happened, Guardiola would not stand in his way.

Haaland's arrival will compensate for the potential loss of Gabriel Jesus -- who has a contract until 2023 and his valued at more than €60m -- while Argentina forward Julian Alvarez, signed from River Plate in January, will be assessed during the summer before a decision is made about whether he will stay with the first team next season.

City, meanwhile, are expecting Ilkay Gundogan to stay this summer despite the midfielder being linked with a move away. Sources close to the club insist the midfielder has not expressed a desire to leave and the expectation is that the 31-year-old will stay until at least the end of his deal in 2023.

Raheem Sterling is also set to be out of contract at the end of next season unless fresh terms can be agreed to keep him at the Etihad.

Sources have told ESPN that City and Sterling will hold more talks over his future in the summer. The 27-year-old England forward is keen to ensure he is central to the club's plans before committing to a long-term deal. He has been linked with moves to Arsenal and Tottenham Hotspur but sources have told ESPN he would be open to exploring options to play abroad if he leaves City.